Tron Flashes Rare Green Despite Warning About BitTorrent Token

Tron’s TRX token flashed green on Monday, outperforming its major cryptocurrency peers thanks to a technical rebound that first emerged roughly 12 hours ago. The ninth-largest cryptocurrency by market capitalization appears to be recovering from a turbulent weekend stoked by speculation that the Tron network won’t be able to manage BitTorrent’s voluminous transactions, something it purports to do via the newly created BTT token.

TRX Outshines Market

The TRX token climbed above $0.02500 in overnight trading, its highest since Friday. At the time of writing, TRX/USD was valued at $0.0238, having gained 4.8% on the day. By comparison, the overall cryptocurrency market was down 3.1% over the 24-hour cycle. The majors were down between 2% and 6%.

It’s not uncommon for Tron to go against the grain of the overall market. It was the last major cryptocurrency to fall last week following bitcoin’s sharp and sudden drop. This precipitated a much bigger selloff, which dragged crypto prices to their lowest in over three weeks. More on this story: Crypto Markets Extend Slide as Volume Plummets; Bitcoin Approaches $3,500.

Tron’s trading volume more than doubled on Monday, reaching $375 million. Volumes declined sharply over the weekend as overall market activity cooled. Binance is the largest market for TRX trades; on Monday it processed more than a fifth of total transactions. https://hacked.com/crypto-markets-extend-slide-as-volume-plummets-bitcoin-approaches-3500/

TRX Rollercoaster

Tron’s native token has been on a rollercoaster as of late. Markets initially rallied behind the launch of the BitTorrent Token (BTT), a cryptocurrency designed to incentivize participation on the massive peer-to-peer file sharing system. The TRX price would eventually reach five-month highs before falling victim to a broad market pullback, which was driven by the aforementioned slump in bitcoin’s price. Losses seemingly mounted over the weekend after a former BitTorrent executive cast doubts about whether the Tron network can actually support BTT transactions.

Simon Morris, who previously served as BitTorrent’s Chief Strategy Officer, said there was “no way” Tron’s network can handle the file-sharing system’s transaction volumes.

“I suspect that what they’re really going to do is they’ll do it on some central server, they’ll wave their hands and say, ‘Oh, it’s a Lightning Network for TRON,’ or something, and pretend it’s TRON-based, but it’s not really TRON-based,” Morris said in an interview with BREAKER magazine.

Morris also slammed Tron’s founder Justin Sun as being all marketing and no substance.

“It’s very clear that Justin is very strong at marketing. He has a very nice personality from a marketing point of view. He doesn’t have a technical bone in his body,” he said, according to CCN.

Sun’s company acquired BitTorrent last summer for $126 million. The acquisition was seen as a major breakthrough for the Tron Foundation and its founder, who has faced criticism for over-hyping projects and rarely delivering on promises.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes.
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1 Comment

Asil

January 15, 2019 at 3:16 am

Warning? Maybe sour grapes would be more appropriate characterization for Simon’s comments. Remember that BitTorrent signed an MOU with Sun for the purchase and then tried to circumvent. Another offer they thought was better came in and they went forward with it. Sun had to sue them in order for them to honor the agreement they signed with him.

Next upside targets for the bulls should they firmly breakdown 1.2900 again, will be the psychological 1.3000 mark.

GBP/USD throughout the session on Monday remained very much elevated. This came as market participants were somewhat maintaining an optimistic view. All of which heading into the British Prime Minister Theresa May’s speech to the House of Commons, on her Brexit plan b. Of course, this had to be drafted again, given her humiliating defeat at the vote last week, on the initial EU withdrawal plan.

Theresa May Plan B

In terms of her details this time round, she will be going back to Brussels, to seek some amendments to her initial agreement. This needs to be done in order to get a plan through another vote in the commons. Looking at some of the GBP bullish takeaways from this statement; she guaranteed rights for EU citizens at several angles, scraping the application fee EU nationals registering in Britain, discussing the backstop with the DUP this week.

To conclude, PM May appears keen in her language to ensure of a soft-Brexit, rather than one that is hard. All of which supported GBP in its push to session highs, at the time, briefly moving back above 1.2900. The price had given up this area on 18th January, when the bears were reversing the run observed on 17th, where GBP/USD touched to big psychological 1.3000 mark again.

Technical Review – GBP/USD

GBP/USD 60-minute chart. Near-term resistance eyed at 1.2900, with bulls locked in on a retest of 1.3000.

GBP/USD at the time of writing continues to trade around the 1.2900 territory. This price did see a brief period cooling, on touted profit-taking post the statement. Near-term resistance can be seen within this price region, but if convincingly broken down again, then there is decent upside potential. Aside from the supply observed here, there isn’t much in the way of the 1.3000 price region.

Given the renewed optimism around Brexit now, this has assisted in maintaining momentum to the upside for GBP. In terms of support to the downside, a strong area of demand should be noted at 1.2850-25 price region. As can be seen via the 60-minute chart view, this has supported the price since 15th January.

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4.6 stars on average, based on 111 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

Justin Sun Sets Out to Prove Tron Is the Real Deal

Tron’s TRX token rose sharply on Monday, going against the grain of a wider market slump that re-emerged 24 hours earlier. The rally comes at a time when founder Justin Sun is setting out to bolster his project’s image and silence the chorus of vocal critics who have come out against Tron.

Sun Sharpens Tron’s Image

Tron’s controversial leader announced earlier this month that he has hired a former attorney at the U.S. Securities and Exchange Commission (SEC). David Labhart, a former SEC attorney, will serve as Tron’s head of compliance.

In further highlighting Tron’s willingness to play ball with regulators, Sun recently told VentureBeat that his company is looking to work closely with federal agencies in the United States, China, South Korea and Japan. These jurisdictions are where Sun hopes Tron will expand to in the future.

Sun is often criticized for overhyping his project with little substance. He has also been called out for exaggerating business relationships and presenting a muddied view of how Tron plans to disrupt the Internet. Along the way, he probably plagiarized whitepapers and sold billions of TRX tokens.

That being said, his words have had more substance as of late. Last summer, Sun acquired BitTorrent, the world’s leading peer-to-peer file sharing system. The interplay between the two projects is easy enough to understand, as the latter will allow Tron to create a globally decentralized content platform.

But not everyone is convinced that BitTorrent or its newly created BTT token will serve the desired purpose. Former BitTorrent executive Simon Morris launched a scathing criticism at Sun earlier this month when he said there was “no way” Tron’s network would be able to handle BitTorrent’s transactional capacity. Crypto pioneer Jed McCaleb, who co-founded Ripple, Stellar Lumens and the now defunct Mt. Gox, recently called projects like Tron “just garbage.”

While Sun probably faces an uphill battle convincing his critics that Tron is the real deal, his project is one of the most talked about in the blockchain space. His 756,000 Twitter followers demonstrate the extent to which Tron has resonated with the market; its current ranking among top crypto projects showcases its popularity among traders.

Prior to the latest rally, Tron had shown little in terms of committed market direction. The massive bull run that re-emerged in mid-December ran out of gas roughly 11 days ago, which led to a sharp reversal followed by consolidation. TRX spiked 180% during the aforementioned rally.

The TRX price faces strong support at $0.0200. A drop below this level seems unlikely at this point. However, breaks to the upside have been just as elusive. For the past week, TRX/USD has been hovering right around $0.0250.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes.
Contact: sam@hacked.com
Twitter: @hsbourgi

Tron (TRX) attempted to push through Monday’s market dip with a 7% price hike in the early morning (UTC), as TRX trade volume began its ascent once more.

The coin’s trade volume had sunk to $99 million just ten days after peaking at over $1 billion – an eight-month high at the time. Monday saw a rapid 98% increase to the Tron changeover, which topped out at $197 million at time of writing, and continues to climb.

One day previously, Tron CEO and founder Justin Sun revealed the first snippets of details regarding the BitTorrent Token (BTT) airdrop. The token drop will commence on February 11th with the release of 10.89 billion units of BTT to TRX holders.

On Monday morning TRX defied the broader market movement which slashed between 5-7% from the major altcoins. From the daily low of $0.023703, TRX climbed 7% up to $0.025424 by time of publication.

The rapid 98% influx to trade volume appears to have been helped along by a mass of activity on the BitForex exchange. The exchange’s TRX/USDT pair accounted for over $23 million of the daily TRX volume – 11% of the daily total.

Binance is the next most concentrated venue of exchange, with $17 million worth of liquidity in the TRX/USDT market alone.

BitTorrent Token Airdrop

“On February 11th, 2019, BitTorrent Foundation will initiate its first airdrop of BitTorrent (BTT) to TRON (TRX) holders. The snapshot will be taken when TRON’s block height reaches 6.6 million. Based on this snapshot, BitTorrent Foundation will initiate its first airdrop of 10,890,000,000 BitTorrent (BTT), corresponding to 1.1% of total circulating supply.”

Perhaps the promise of some BTT was enough to trigger TRX’s surge on Monday. Assuming the market aims to ramp up TRX in the lead up to the airdrop, then prices are likely to only get higher from here.

That said, the broader crypto market is currently in the midst of what seems like a slow bleed out. With that in mind, would Tron be able to continue its surge through a major dip? For some recent historical context, take a look at the Waves (WAVES) surge back in early December. The value of Waves more than quadrupled during a month when the rest of the market struck yearly lows, so it can be done.

The BTT airdrop will be a yearly event, according to the Medium article, with over 10 billion BTT to be distributed every year up until 2025.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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